Honey's deal-hunting browser extension accused of deceiving customers and YouTuber

In theory, the PayPal Honey browser extension is an easy way to find better deals on products when shopping online. But in a video published this weekend, YouTuber MegaLag claims the extension is a "fraud" and that Honey is "stealing money from influencers, including people they've paid to promote their product."

Honey works by popping up an offer to find a coupon code for you when you're checking out in an online shop. But as MegaLag notes, it often fails to find codes or Honey-branded offers, even when a simple internet search might find something better. The Honey website claims it will "find every working promo code on the internet." But according to MegaLag's video, ignoring better deals is a feature of Honey's partnership with its retail customers.

Megalag also said that Honey would hijack affiliate revenue from influencers. According to Megalag, if you click on an influencer's affiliate link, Honey will substitute its own tracking link when you interact with their deal pop-up at check-out. This doesn't matter if Honey gave you a coupon or not, and the result is that Honey gets credit for the sale, not the YouTuber or website whose link took you there.

PayPal VP of corporate communications Josh Crisco said in an email to The Verge that "Honey follows industry rules and practices, including last-click attribution."

Megalag isn't the first to make such a claim. A 2021 Twitter post advised using Honey's discount code in another browser so it wouldn't get affiliate credit. A Linus Media Group employee also reported in a 2022 forum reply that Linus Tech Tips dropped Honey as a sponsor due to its affiliate link practices.

According to Megalag, Honey's extension is widely recommended due to its convenience, with nearly 5,000 Honey-sponsored videos on nearly 1,000 YouTube channels. We also recommended it on The Verge; we no longer do so.